Tuesday, 13 November 2012

U.S. yields undergoing 'Japanization': Nomura


http://blogs.marketwatch.com/thetell/2012/11/12/u-s-yields-undergoing-japanization-nomura/


The Tell
The Markets News and Analysis Blog

U.S. yields undergoing ‘Japanization’: Nomura

November 12, 2012, 12:32 PM
Bond investors in Asia have changed their tune lately, and come around to the idea that U.S. Treasury rates may stay very low for much longer than previously expected, analysts at Nomura Securities said Monday after visiting clients in Thailand, Japan, Singapore and South Korea.
“Unlike prior visits to the region, there now seems to be a new shared ethos forming, to which the majority of investors we spoke with now subscribe, that U.S. Treasury rates will remain low from now on, similar to the Japan experience,” George Goncalves, head of U.S. rates strategy at Nomura Securities, wrote in a note.
“In past visits to Asia ex-Japan, we were usually greeted with the idea that one day U.S. rates would spike from all of the inflationary policies and/or all the new bond supply floated since the financial crisis of 2008. These thoughts from [clients in the region] were always starkly different from the general Japanese account base who, from the start of the 2008 financial crisis, viewed the U.S. path as one closely following what Japan had experienced. It now seems as though nearly everyone in [the region] who trade rates is coming around to the Japan-based idea of the ‘Japanization’ of western fixed income markets.”
– Deborah Levine
Follow The Tell blog on Twitter @thetellblog
Follow Deborah on Twitter @ dlevineMW 


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